Beverages 2015 What’s In Store? - Beverage Marketing ... U.S. beverage market has experienced...
Transcript of Beverages 2015 What’s In Store? - Beverage Marketing ... U.S. beverage market has experienced...
The Packaging ConferenceThe Packaging Conference
BeveragesBeverages 20152015Beverages Beverages 20152015What’s In Store? What’s In Store?
February 2, 2015
Beverage Marketing Corporation utilizes an integrated model for providing information, analysis and advice to beverage industry clients
Beverage Marketing Capabilities
analysis and advice to beverage industry clients
Unique Beverage Industry Expertise for Providing “Added-Value” to Selected Clients
Cutting Edge Insights: New Age Emergence, Multiple Beverage Competition, Specialty Beer Opportunity, Bottled Water Dominance, Hyper-Category
Competition Micro-Marketing Age
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Competition, Micro-Marketing Age
State of the Industry – The Good and the Bad
What’s In Store
Beverage Headlines
Liquid refreshment beverage market rebounds with modest growth in 2014 after flat performance in 2013g p
Carbonated soft drinks improve but experience modest decline
C i d lid h f b l d Continued solid growth from bottled water
Niche categories continue to outperform traditional mass-market categoriesmarket categories
Wine and spirits lead alcohol growth, and beer experiences improved performance
Copyright © 2015 Beverage Marketing Corp.-3-
The economy continues to move in a positive direction with improved GDP growth and lower unemployment but improvement has been slow
What’s In Store
Quarterly GDP Change
lower unemployment, but improvement has been slow
Unemployment RateQuarterly GDP Change2010 – Q3 2014
Unemployment Rate2000 – 2014
10%
3.9%3.8%
2 5%
4.1%
3.1%
2 5%
4.1%3.5%
4.6%5.0%
8%
10%
2.5%2.3%
0.4%
1.3%1.8% 2.0%
1.3%
0.4%
1.1%
2.5%
4%
6%
-2.1% 2%
4%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 0%'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
2013 2014
Copyright © 2015 Beverage Marketing Corp.-4--4-
Source: Beverage Marketing Corporation; Bureau of Economic Analysis, Department of Commerce, Department of Labor
Beverage stock performance was strong in 2014 – consistent with the performance of the overall stock market
What’s In Store
Stock Price Performance2009 – 2014
2009 2010 2011 2012 2013 20142009 2010 2011 2012 2013 2014
KO +25.9% +15.4% +7.1% +2.8% +13.5% +6.3%
PEP +11.0% +7.5% -2.2% +2.5% +21.2% +14.0%
DPS +74.2% +24.2% +5.5% +11.9% +10.3% +34.7%DPS 74.2% 24.2% 5.5% 11.9% 10.3% 34.7%
CCE +76.0% +18.1% +1.1% +23.1% +39.1% +21.3%
COT +540.6% +36.7% -29.7% +28.3% +0.4% -13.9%
Soft Drinks +21.6% +14.6% +3.8% +8.6% +9.8%Soft Drinks
Beverages +20.4% +15.0% +4.2% +10.1% +13.1%
Consumer Staples +14.2% N/A +10.0% +10.5% +12.8%
Copyright © 2015 Beverage Marketing Corp.
Source: Beverage Marketing Corporation; Charles Schwab
-5-
Consumer sentiment is at its highest level since the recession began in 2008 although still lagging pre-recession numbers
What’s In Store
Annual U.S. Consumer Sentiment Index
lagging pre recession numbers
ua U S Co su e Se t e t de1995 – 2014
103 2 104.6105.8 107.6
92.2 93.6
103.2 104.6
89.2 89.687.6
95.2
88.687.3 85.6
72 676.478.4
84.1
63.866.3
72.668.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Source: Thompson Reuters/University of Michigan
-6-
The U.S. beverage market has experienced overall mixed performance since declines during the recession
What’s In Store
U.S. Total Beverage Market2009 2014P
during the recession
• 2014 showed modest growth after flat performance in 2013
1 5%
2009 – 2014P
0.8%
1.5%1.3%
ge
-0 1% -0 1%me
Ch
ang
-0.1% -0.1%
Vol
u
-1.6%
2009 2010 2011 2012 2013 2014P
Copyright © 2015 Beverage Marketing Corp.
2009 2010 2011 2012 2013 2014P
P: PreliminarySource: Beverage Marketing Corp.
-7-
Post-recession annual beverage revenues have been consistently positive, but the differential versus volume growth is narrowing
What’s In Store
U.S. Total Beverage MarketVolume and Wholesale Revenue
(Millions of Gallons and Wholesale Dollars)
differential versus volume growth is narrowing
( )2009 – 2014P
2.4%
3.0%
2.1%1.9%
han
ge
0.7%1.1%
1.3%
0.5%0.1%
1.0% 1.0%
C
-1.6%
-0.1% -0.1%
1.6%
2009 2010 2011 2012 2013 2014P 09/14 CAGR
Volume Wholesale Revenue
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P: PreliminarySource: Beverage Marketing Corp.
-8-
For the first time since the recession, all commercial beverage groups advanced in 2014
What’s In Store
U.S. Beverage Market – 2014P
2.0%
e
0.1%
0.7%
me
Ch
ange
Vol
um
-1.9%
LRBs Traditional Beverages
Beverage Alcohol
Tap Water
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P: PreliminarySource: Beverage Marketing Corp.
-9-
Wines and spirits have been driving beverage alcohol growth with beer turning slightly positive in 2014
What’s In Store
p
Beverage Alcohol – 2014P
2.2%2 0%2.0%
ange
0 7%olum
e C
h
0.4%
0.7%Vo
Beer Wine Spirits Total Beverage Alcohol
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P: PreliminarySource: Beverage Marketing Corp.
-10-
Over the last five years, bottled water has increased its share of stomach by more than 3 share points, capturing the undisputed #2 position
What’s In Store
p , p g p p
Volume Share of Stomach by U.S. Beverage Segment – Billions of Gallons2009 – 2014P
100% = 58 8 100% = 61 2
0 6% 0 9%0.8% 0.7%
12.7% 13.5%
Wine/SpiritsEnergy Drinks
Value-Added WaterTap/Others
100% = 58.8 100% = 61.2
10.9% 9.7%
5.9% 6.0%
6.1% 5.1%1.9% 2.3%
2.0% 2.1%0.6% 0.9%0.8% 0.7%
Milk
Tea
Fruit BeveragesSports Bev
Wine/Spirits
11.0% 10.5%
10.0% 10.7%
10.9% 9.7%Milk
Coffee
Beer
14.4% 17.7%Bottled Water
Beer
23.7% 20.8%CSDs
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P: PreliminarySource: Beverage Marketing Corporation
2009 2014P
More non-alcoholic beverage categories grew in 2014 than declined, and niche categories generally outperformed large traditional categories
What’s In Store
2014 Category Winners and Losers
g y p g g
WINNERS* LOSERS**WINNERS*
• Bottled Water
LOSERS**
• CSDs
• RTD Coffee
• RTD Tea
• Milk
• Fruit Beverages
• Sports Drinks
• Energy Drinks
• Value-Added Water
Copyright © 2015 Beverage Marketing Corp.-12-
* Volume increases** Volume declines
What’s In Store
More categories experienced improved performance in 2014 even when they declined
2014 Beverage Report Card
IMPROVED WORSENED
• Bottled Water
• CSDs
• Fruit Beverages
• RTD Coffee
• Energy Drinks
• Milk
• RTD Tea
• Sports DrinksSports Drinks
• Value-Added Water
Copyright © 2015 Beverage Marketing Corp.-13-
In general, traditional mass market categories have struggled while niche categories have experienced growth
What’s In Store
The U.S. Liquid Refreshment Beverage Market2014P
experienced growth
• Bottled water is the primary exception of a mainstream category that has thrived
8.0%6 8% 7 1%
2014P
6.8%
2 6%3.5%
7.1%
han
ge
2.6%
Vol
ume
Ch
-1.0%
-2.8%
4 9%
V
-4.9%CSDs Fruit
BevsValue Added Waters
RTD Coffee
Energy Drinks
RTD Tea Sports Bevs
Bottled Water
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Waters
P: PreliminarySource: Beverage Marketing Corp.
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Many big brands declined in 2013
What’s In Store
Top 10 Soft DrinksTop 10 Soft Drinks Top 10 Beer BrandsTop 10 Beer Brands Top 10 Spirits BrandsTop 10 Spirits Brands
Coke
Diet Coke
Bud Light
Coors Light
Bacardi
Jack Daniels
Pepsi-Cola
Mountain Dew
Budweiser
Miller Lite
Absolut
Grey Goose
Dr Pepper
Diet Pepsi
Natural Light
Busch Light
Diet Mt. Dew
Fanta
Busch
Heineken
Coke Zero
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New product introductions have been on the rise after declining in 2009 due to the recession in the beverage industry
What’s In Store
recession in the beverage industry
New Beverage Product Introductions2001 – 2014
4.44.7
4.5
KU
s
3.2
3.8 3.9 4.04.4
ands
of
SK
2.0
2.92.6 2.6 2.7
Thou
sa 1.7 1.6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Copyright © 2015 Beverage Marketing Corp.
Source: Beverage Marketing Corp.; Mintel
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Diet soft drinks have hit a ceiling and are declining at a faster rate than regular soft drinks
What’s In Store
regular soft drinks
• Some diet consumers have shifted to bottled water and other categories• Regular CSD volume increased in 2014 for the first time in many years
Carbonated Soft Drink MarketGrowth by Type
U.S. Carbonated Soft Drink MarketShare by Type2009 – 2014P
2010 – 2014P
Year Regular Diet30 9% 27.9%Diet
09/10 -0.9% -0.7%
10/11 -1.5% -2.5%
11/12 -1.1% -3.4%
30.9%
/
12/13 -1.9% -6.3%
13/14P 0.9% -5.5%69.1% 72.1%Regular
2009 2014P
09/14P5-Yr CAGR -0.9% -3.7%
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P: PreliminarySource: Beverage Marketing Corporation
Reduced-calorie carbonated soft drinks formulated with varying versions of steviaaccount for a small but growing share of the diet CSD market
What’s In Store
account for a small but growing share of the diet CSD market
Stevia Sweetened CSDs
2013 Supermarket Sales 2013 Supermarket Sales 2013 Supermarket Sales $0.1 Million $2.0 Million $12.7 Million
2013 Supermarket Sales Sa es$7.2 Million
Copyright © 2015 Beverage Marketing Corp.
* Retail sales in Supermarket onlySource: Beverage Marketing Corp.; SymphonyIRI-18-
Craft sodas are beginning to emerge as a viable option for today’s consumers with new brands and companies entering the market
What’s In Store
brands and companies entering the market
Craft Soda
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New dispensing systems are offering consumers more variety
What’s In Store
Variety and CustomizationVariety and Customization
Pepsi SpireCoke Freestyle Coming Soon:Keurig Cold Cup Dispenser
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What’s In Store
Keurig Cold Benefits
Beverage delivered cold
Carbonation with no CO2 canister
Perfect dosing & one touch simplicity
Sustainable
Vast brand selection
L hi F ll 2015L hi F ll 2015
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Launching Fall 2015Launching Fall 2015
Approximately 20% of consumers say they have an interest in Keurig Cold and BMC estimates the potential market at 150 million cases by the second year
What’s In Store
Interest in Keurig Cold Keurig Cold Estimates by BMCInterest in Keurig Cold
21%Very Interested
Keurig Cold Estimates by BMC
U. S. Households 121.0 Million
23%Somewhat InterestedPenetration 5%
17%Minorly Interested Machines in Use 6.0 Million
39%Not Interested at all
Attachment Rate 1.5 Servings per Day
LRB Servings per Year 3 3 BillionLRB Servings per Year 3.3 Billion
150 Million Cases150 Million Cases
Copyright © 2015 Beverage Marketing Corp.-22-
Source: Beverage Marketing Corp.; Consumer Edge Research
Consumer health and variety demands negatively impact CSD consumption
What’s In Store
Reasons for Reducing CSD ConsumptionReasons for Reducing CSD Consumption
Tired of
Health
drinking them
EconomySwitching
More tap water
Copyright © 2015 Beverage Marketing Corp.-23-
Source: Beverage Marketing Corporation; Consumer Edge Research
Modest pricing increases in carbonated soft drinks coupled with significant pricing declines in bottled water have contributed to respective category performances
What’s In Store
Wholesaler Dollars Per Gallon Indexed to 2000
140
Wholesaler Dollars Per Gallon Indexed to 2000
2014 Absolute Price$4.04
120
130
140
90
100
110
Inde
x
70
80
90
$1.22
602000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P
CSDs PET Single Serve Bottled Water
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Source: Beverage Marketing Corp.
The single-serve water segment continues to drive overall category growth and accounts for two-thirds of total volume
What’s In Store
and accounts for two thirds of total volume
• Domestic sparkling was fastest growing segment in 2014 off a small base• In 2013 and 2014, all category segments increased
U.S. Bottled Water Market2012 – 2014P
Share and Growth in Volume by Category
Share GrowthCategories 2012 2013 2014P 12/13 13/14P
NON-SPARKLINGPET Single-Serve 65.1% 66.0% 66.6% 6.1% 8.4%1-2.5 Gallon 10.3% 10.0% 9.5% 1.1% 2.2%Direct Delivery 12.4% 12.1% 11.8% 1.7% 4.6%Vending 8 3% 8 1% 7 9% 1 7% 5 2%Vending 8.3% 8.1% 7.9% 1.7% 5.2%
Subtotal 96.2% 96.1% 95.8% 4.6% 7.0%
Domestic Sparkling 2.7% 2.8% 3.1% 9.3% 17.1%Imports 1.1% 1.1% 1.1% 3.9% 10.4%
TOTAL 100.0% 100.0% 100.0% 4.7% 7.3%
Copyright © 2015 Beverage Marketing Corp.-25-
P: PreliminarySource: Beverage Marketing Corporation
While stable, PET water pricing continues to be historically aggressive and is likely to remain so at least through 2015
What’s In Store
g
• Every-day pricing has been as low as $2.49-2.99 for 24-packs at retail
Advances in Supply Chain Costs
High speed bottle filling in a range of 15 18 million cases per High-speed bottle filling in a range of 15-18 million cases per year per line
Stable to declining resin costsg
Continued bottle light-weighting
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While branded water outsells private label in the retail PET segment, private label has made significant inroads over the last five years
What’s In Store
made significant inroads over the last five years
U S R t il PET W t M k tU.S. Retail PET Water MarketBranded vs. Private Label
2014P2014P2009
Private Label15.6%
B d dPrivate Label
43 9%
Branded84.4%
Branded56.1%
43.9%
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Source: Beverage Marketing Corporation
In a sign of the future, bottled water already outsells CSDs in food stores in 15 U.S. cities
What’s In Store
• With bottled water growing and CSDs declining, other markets are likely to join this group
160160155
144 140132
127123123
118108 105 103 102 102 102 101 97
86
h ven
C.
Total U.S. Food Index
80
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Ang
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D.C
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Bos
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San
F
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Har
tf
Hou
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Tam
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Was
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Alb
an
Orl
an
Copyright © 2015 Beverage Marketing Corp.
* Nielsen Food Markets 52 weeks ending 9/7/13; Bottled Water does not include flavored/enhanced waterSource: AC Nielsen; NWNA
-28-
Value-added waters account for just 5% of single-serve water beverage volume, but hold a larger share of revenues due to higher pricing
What’s In Store
volume, but hold a larger share of revenues due to higher pricing
U.S. Retail Premium Bottled Water MarketShare and Growth by Volume and Revenues
2014P
Volume Share Revenue Share
Volume RevenueS Ch Ch
Flavored WaterEnhanced Water 4.3%
1.0%
12.3%
3.0%
Segment Change Change
Flavored 1.5% -0.5%
Enhanced -6.5% -5.5%
Regular PET 8.4% 5.1%Regular PETBottled Water
94.7%84.7%
Total 7.6% 3.5%
Copyright © 2015 Beverage Marketing Corp.-29-
P: PreliminarySource: Beverage Marketing Corporation
Slightly over half of the fruit beverage category is comprised of 100% juice
What’s In Store
• Nevertheless, both 100% juice and juice drinks have experienced weak performance over the last five years
U.S. Fruit Beverage MarketGrowth
2010 – 2014P
U.S. Fruit Beverage MarketVolume Share by Segment
2009 – 2014P2010 2014P
Year 100% Juice Drinks
09/10 -4 1% 2 1%45 1% 46 0%Drinks 09/10 -4.1% 2.1%
10/11 -5.4% -1.1%
11/12 -2.8% -5.6%
45.1% 46.0%Drinks
12/13 -1.2% -2.7%
13/14P -1.6% -4.2%54.9% 54.0%100% Juice
09/ 3 0% 2 3%
2009 2014P
09/14P -3.0% -2.3%5-Yr CAGR
Copyright © 2015 Beverage Marketing Corp.-30-
P: PreliminarySource: Beverage Marketing Corporation
What’s In Store
Despite softness in the overall fruit beverage market, high-pressure pascalization (HPP) juices have emerged as a premium growth segmentpascalization (HPP) juices have emerged as a premium growth segment
HPP Juice Brands
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Virtually all of the growth in the U.S. tea category has come from RTD tea as k t i
What’s In Store
U S T M k t
consumers seek out convenience
U.S. Tea MarketVolume Growth2010 – 2014P
U.S. Tea MarketVolume Share by Segment
2009 – 2014P2010 2014P
Loose/Year RTD Bagged/Mix
09/10 10 1% 0 2%36.1% 42.9%RTD
09/10 10.1% -0.2%
10/11 5.3% -2.2%
11/12 5.2% -0.2%
12/13 0.6% -1.4%
13/14P 2.6% -1.2%63.9% 57.1%Loose/Bagged
/Mix
2009 2014P
09/14P 4.7% -1.0%5-Yr CAGR
Copyright © 2015 Beverage Marketing Corp.-32-
2009 2014P
P: PreliminarySource: Beverage Marketing Corporation
RTD coffee remains a relatively small share of the total U.S. coffee market, but growth has been healthy
What’s In Store
U S Coffee Market
but growth has been healthy
U.S. Coffee MarketVolume Growth2010 – 2014P
U.S. Coffee MarketVolume Share by Segment
2009 – 2014P 2010 2014P
Ground/Year RTD Whole Bean
09/10 2 4% 0 2%
1.0% 1.5%RTD
09/10 2.4% 0.2%
10/11 9.9% -3.8%
11/12 9.5% 4.1%Whole Bean/ Ground 99 0% 98 5%
12/13 11.1% 0.2%
13/14P 8.0% -0.9%
Ground 99.0% 98.5%
2009 2014P
09/14P 8.1% -0.1% 5-Yr CAGR
Copyright © 2015 Beverage Marketing Corp.-33-
P: PreliminarySource: Beverage Marketing Corporation
The milk industry is working to win the battle of public opinion to combat what it considers negative information in the marketplace
What’s In Store
what it considers negative information in the marketplace
• Current advertising touts milk as a great source of protein, and also positions chocolate milk as a great energy source
#MilkTruth
Copyright © 2015 Beverage Marketing Corp.-34-
Craft beer continues to be the fastest growing segment in the beer category as new breweries are still opening and approaching 3,000 nationally
What’s In Store
Copyright © 2015 Beverage Marketing Corp.-35-
Most emerging categories have health and wellness attributes and/or promise specific functional benefits
What’s In Store
functional benefits
Select Offerings and Categories of Today’s Emerging Beverages
Functional Chia Aloe Vera Plant-based Water
Probiotic Energy Shots Coconut KombuchaProbiotic Energy Shots Coconut Water
Kombucha
Copyright © 2015 Beverage Marketing Corp.-36-
As the number of beverage categories has proliferated, so have packaging alternatives
What’s In Store
Evolution of Beverage Packaging1970s to Present Today
• Multi-packs: 6-Pack, 12-Pack, 24-Pack, 15-Pack, 20-Pack & 30-Pack, new 2000s
• Multi-packs: 6-Pack, 12-Pack, 24-Pack, 15-Pack, 20-Pack & 30-Pack, new configurations
configurations• PET: 2-Liter, 3-Liter,
12-oz/500 ml, 16-oz, 20-oz, 32-oz, 34-oz, 96-oz size
1990s
• Multi-packs: 6-Pack, 12-Pack, 24-Pack, 15-Pack & 20-Pack
• PET: 2-Liter, 3-Liter,
configurations• PET: 2-Liter, 3-Liter, 12-
oz/500 ml, 16-oz, 20-oz, 32-oz, 34-oz, 96-oz, size proliferation, proprietary h i i
96 oz, size proliferation, proprietary shapes, interactive packages
• Glass: 10/12-oz, i l 7
• Multi-packs: 6-Pack, 12-Pack &
te , 3 te ,12-oz/500 ml, 16-oz, 20-oz, 32-oz, 34-oz, 96-oz
• Glass: 10/12-oz, single serve 7 oz
shapes, interactive packages
• Glass: 10/12-oz, single-serve, 7-oz, 16/17.5-oz, 20-oz. proprietary
single-serve, 7-oz, 16/17.5-oz, 20-oz. proprietary shapes
• Cans• Aseptic: multi-packs,
1980s
• Multi-packs: 6-Pack
• PET: 2 Liter
Pack, 12 Pack & 24-Pack
• PET: 2-Liter, 3-Liter
• Glass: 10/12-oz, single se e
single-serve, 7-oz, 16/17.5-oz, 20-oz.
• Cans• Aseptic: multi-packs,
single
p p yshapes
• Cans• Aseptic: multi-packs,
single, size proliferation, adult sizes/graphics
p p ,single, size proliferation, adult sizes/graphics
• Paper: half-gallon, quart
1970s
Copyright © 2015 Beverage Marketing Corp.
• PET: 2-Liter• Glass: 10/12-oz
single-serve• Cans
• Paper: half-gallon, quart
adult sizes/graphics• Paper: half-gallon, quart
quart• “Shot” formats
-37-
Cans, plastic and glass comprise more than 90% of the beverage packaging universe• Over the last five years, plastic has seen the most growth due mostly to the success of the bottled
What’s In Store
water category
Beverage Packaging Share by Package Type*Billions of Packaging Units
100% = 246.4 245.5
5.9% 5.2%1.2% 1.1%1.1% 1.0%
PouchesPaper
Aseptic
2008 – 2013
Beverage Package TypesGrowth
15.6% 14.6%Glass
Paper 2008 2013 TYPE CAGR (%)
Aseptic -3.1%
34.3% 39.1%PlasticPouches -1.6%
Paper -2.5%
Gl 1 4%
41.8% 39 0%Cans
Glass -1.4%
Plastic 2.6%
Cans -1 5%41.8% 39.0%
2008 2013
Cans Cans -1.5%
TOTAL -0.1%
Copyright © 2015 Beverage Marketing Corp.
* Includes Milk, does not include Beer kegs Source: Beverage Marketing Corp. BMC Strategic Associates analysis
2008 2013
-38-
Recently, smaller CSD packages have entered the market, generally increasing gross profit per pack, but impacting volume
What’s In Store
g p p p , p g
Multipack Volume, Revenue and Profit Comparison
Ounces Sold Price per Pack Gross Profit per PackOunces Sold Price per Pack Gross Profit per Pack
$3.23 $2 83
~13% fewerdollars
144$2.83
$1.29$1.52
~60% fewer ounces
~20% more profit
60$1.29
12pk 12oz Cans
8pk 7.5oz cans 12pk 12oz Cans
8pk 7.5oz cans 12pk 12oz Cans
8pk 7.5oz cans
Copyright © 2015 Beverage Marketing Corp.-39-
Source: Beverage Marketing Corporation
Packaging innovation has gained in importance as the marketplace has gotten more crowded as a means to distinguish both categories and brands
What’s In Store
crowded as a means to distinguish both categories and brands
Copyright © 2015 Beverage Marketing Corp.-40-
Brands often tend to be identified with a particular packaging material – often indicative of the package in which the brand was launched
What’s In Store
of the package in which the brand was launched
Selected Beverage Brands by Lead Pack Type
Gl
Lead Format
Selected Beverage Brands by Lead Pack Type
Glass
Aluminum
Plastic
Hybrid
Copyright © 2015 Beverage Marketing Corp.-41-
In the future, the marketplace will be characterized by numerous high-value, low relative volume opportunities
What’s In Store
High Growth(2008-2013 CAGR)
Alc Pouches
volume opportunities
20%
Coconut WaterHard Cider
Alc Pouches
Enhanced RTD Teas
Organic J i
Energy
0%
10%
Craft Beer
MalternaJuices
gy
SPFJ
RTD Coffee
RTD Tea
10%Tequila
tives
Straight Whiskey
VodkaPET Water
Domestic
Projected Value Enhanced
Sports Drinks
$250 Million
$5 Billion
$35 Billion $50 Billion$500 Million
0% Milk
Soy $25 Billion$10 Billion
F it
WhiskeyWine
Value
PremiumCSDs
Regular CSDs
Diet CSDsEnhanced Fruit Drinks
Enhanced Waters
SS Dairy
$1 Billion0%
-5%Bulk/HOD Water
Milk100% Juices
Flavored
Fruit Drinks
Imported Wine
Imported Beer
Copyright © 2015 Beverage Marketing Corp.-42-
yDrinks
Low Growth
FlavoredWater
Among refreshment beverages, the strongest growth is projected for bottled water, sports beverages, energy drinks and RTD tea and coffees
What’s In Store
U S Beverage Market Projections by Category
g g
• CSDs, milk and fruit beverages will need to innovate and provide healthier options to rekindle growth
U.S. Beverage Market Projections by Category 2014P – 2015p
Categories 2014P 2015p 13/14P 14P/15pShare Growth
Non-AlcoholicCarbonated Soft Drinks 33.1% 32.2% -1.0% -1.2%Bottled Water 28.1% 29.3% 7.1% 5.6%
PET Water 18.8% 19.7% 8.5% 6.5%Fruit Beverages 8 2% 7 9% 2 8% 2 3%Fruit Beverages 8.2% 7.9% -2.8% -2.3%RTD Tea 4.1% 4.1% 2.6% 2.7%Sports Beverages 3.7% 3.7% 3.5% 2.8%Energy Drinks 1.5% 1.6% 6.8% 6.0%Value-Added Water 1.1% 1.0% -4.9% -2.9%Value Added Water 1.1% 1.0% 4.9% 2.9%RTD Coffee 0.2% 0.2% 8.0% 7.0% Subtotal 80.0% 80.1% 2.0% 1.6%
AlcoholicBeer 16.6% 16.5% 0.4% 0.7%Wine 2.1% 2.1% 2.2% 2.5%Spirits 1.3% 1.3% 2.0% 2.0% Subtotal 20.0% 19.9% 0.7% 1.0% TOTAL 100.0% 100.0% 1.8% 1.5%
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P: Preliminary; p:Projected Source: Beverage Marketing Corporation
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